Kingfish ASM Presentation 6 August 2021

ANNUAL MEETING
OF SHAREHOLDERS
Kingfish Limited
6 August 2021

Board of Directors
Kingfish Team
Alistair
Ryan
Carmel
Fisher
Andy
Coupe
Carol
Campbell
Sam Dickie
Senior Portfolio
Manager
Matt Peek
Senior Investment
Analyst
Wayne Burns
Corporate
Manager
David
McClatchy
Michael
Bacon
Senior Investment
Analyst

Agenda
•Preliminary matters
•Chair’s Overview
•Manager’s Review
•Q&A
•Annual Meeting Resolutions

ONLINE ATTENDEES –QUESTION
PROCESS
•When the Question function is available,
the Q&A icon will appear at the top of
the app.
•To send in a question, simply click in the
‘Ask a question’ box, type your question
and the press the send
arrow
•Your question will be sent
immediately for review

Chair’s Overview

Kingfish’s Investment Objectives
Achieve a high real rate of return, comprising both income
and capital growth within acceptable risk parameters
Access to a diversified portfolio of New Zealand quality,
growth stocks through a single tax-efficient vehicle
Absolute Returns
Diversified Portfolio

Corporate Governance
•Board meetings
•Investment Committee meetings
•Audit & Risk Committee meetings

2021 Overview
Net profitDividendNAV per shareShare price
$142.7m
(2020: $1.7m)
13.48cps
(2020:12.63cps)
$1.77
(2020: $1.39)
$1.90
(2020: $1.29)
Total shareholder
return*
Dividend return
Adjusted NAV
return*
Share price
premium/
(discount) to NAV ^
+65.1%
(2020: 7.2%)
+7.7%
(2020: +8.5%)
+41.1%
(2020: 0.4%)
7.3%
(2020: (6.7%)
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP Financial Information Policy which is
available on the Kingfish website.
^Share price premium/(discount) to NAV (including warrant price on a pro-rated basis, when warrants are on issue).

2021 Overview –Continued
Portfolio Performance
For the year ended
31 March
12 months
3 years
(annualised)
5 years
(annualised)
Adjusted NAV
return*
+41.1%
(2020: +0.4%)
+18.5%+16.1%
Gross performance *
+46.0%
(2020: +2.9%)
+22.1%+19.2%
Benchmark Index ^
+28.2%
(2020: (-0.5%)
+14.7%+13.2%
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP
Financial Information Policy which is available on the Kingfish website.
^ The S&P/NZX50G Index

Earnings per share
Earnings
per
Share
20212020201920182017
Basic
Earnings
per Share
(cents)
56.280.7524.2419.6214.50
Diluted
Earnings
per Share
(cents)
54.650.7523.8119.5114.13

Kingfish Share Performance
Share price as at: -31/01/20 $1.70
-23/03/20 $1.05
-30/04/20 $1.50
-1/07/20 $1.61
-1/07/21 $2.03
•Share price gain 1/07/20 to 1/07/21 + 42 cps
•Gains from warrants + 12 cps
•Dividends+ 14 cps
+ 68 cps
•On starting price including warrants (July 2020) $1.63

Use of Shareholder’s Funds

First Four Months, FY 2022
1 April –31 July 2021
Total shareholderreturn*
+7.7%
Adjusted NAV return*
+1.5%
NAV per share 31 July 2021
$1.76
Share price 31 July 2021
$2.01
Net profit
$8.1m
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP Financial
Information Policy which is available on the Kingfish website.

Warrants
•Capital Management Programme
•56.3m KFLWF warrants exercised in March 2021 at an
Exercise Price of $1.51
•Shares traded on-market at $1.90
•$84.8 new shareholder funds

Sam Dickie
Senior Portfolio Manager
Manager’s Review

Who am I?
•I own more than 10 businesses
•I have been listed for more than 27 years
•I have compounded shareholder returns at 19% per annum
•I invest with mega trends as tailwinds

Agenda
1.FY2021 review
2.Kingfish’s Process in Action
3.Portfolio insights
4.Outlook

1.FY2021 review

Strong recovery from the NZ market
31 Dec 201931 Mar 202030 Jun 202030 Sep 202031 Dec 202031 Mar 202130 Jun 2021
Note: S&P/NZX50G index; Source: Bloomberg
FY2021 financial year
Unprecedented
stimulus / recovery
Inflation concerns
Vaccination /
reopening hopes
S&P/NZX 50

Manager performance in FY2021
+46.0%
+28.2%
-
+10%
+20%
+30%
+40%
+50%
Kingfish gross
performance return
S&P/NZX50G index
Fiscal year to 31 March 2021

+1.8%
+0.3%
-
+1%
+2%
Kingfish gross
performance return
S&P/NZX50G index
Fiscal year to date FY2022 as at 31 July 2021
FY2022 performance to date

Portfolio company performance in FY2021
-50%
0%
50%
100%
150%
A2 Milk
F&P Healthcare
Contact
Port Of Tauranga
Meridian Energy
Ryman Healthcare
Auckland Airport
Delegat
Infratil
Vista
Mainfreight
Freightways
Summerset
Pushpay Holdings
Portfolio company return (year to 31 March 2021)

2. Kingfish’s Process in Action

How the process identifies an attractive investment
Long term
growth
runway
21MW →350+ MW
Data proliferation
Quality assets,
wide moats
Passionate,
quality
management
Deep
research,
differentiated
view
Site visits: Sydney
Competitor visits: Silicon Valley
Discussions with global experts
Customer visits

Value continues to compound
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
31 Mar 202030 Jun 202030 Sep 202031 Dec 202031 Mar 202130 Jun 2021
AustralianSuperapproach
fast tracked ‘discovery’
of someintrinsic value
Multiple increases to Kingfish
position size in 2020

3. Portfolio insights

A busy year amidst significant volatility
Decreases
(-19.0%)
Increases
(+8.5%)
Exits
(nil)
Entries
(+4.0%)
Larger
Smaller
Percentages reflect net target weight changes FY21 and FY22 to date

-
200
400
600
800
1,000
1,200
1Q182Q183Q184Q181Q192Q193Q194Q191Q202Q203Q204Q201Q212Q21
What went especially well and why
Trailing 12 month sales per quarter
Sharpest influx of new residents ever
Fastest market share gains ever
Differentiated view here
Top 500
customers
in FY21
Existing
customers
New
customers

What didn’t go well and what we learned
-
$200m
$400m
$600m
$800m
1H182H181H192H191H202H201H21
China LabelEnglish Label
Infant formula sales:
Moat narrower than we thought, coupled with management mis-steps

4. Outlook

Kingfish continues to outperform
-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Mar
2004
Mar
2005
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2013
Mar
2014
Mar
2015
Mar
2016
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2021
Adj. NAVS&P/NZX50G

Outlook
•NZ/global economic activity levels remain robust
•Inflation and interest rates are rising
•We are coming off a year of exceptional performance
•Cautiously optimistic
•Consistent strategy: Wide moats, long growth runways,
exceptional management

0%
2000%
4000%
6000%
8000%
10000%
12000%
1994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021
... I am Infratil
Total shareholder return since listing

General Questions from
Shareholders
(not relating to resolutions)

ONLINE ATTENDEES –VOTING PROCESS
•When the poll is open, the vote will
be accessible by selecting the
voting icon at the top of the screen
•To vote simply select the direction in
which you would like to cast your
vote, the selected option will change
colour.
•There is no submit or send button,
your selection is automatically
recorded.

Annual Meeting
2021 resolutions

2021 Annual Meeting Resolutions
•Introduce and propose
•Discussion, questions
•Lodge your vote per the digital portal

Matters of Business
•Annual Report
•Resolutions:
–Re-elect Carol Campbell
–Elect David McClatchy
–Auditor remuneration

Resolution 1
Re-election of Carol Campbell
To re-elect Carol Campbell as a Director of Kingfish Limited

Resolution 2
Election of David McClatchy
To elect David McClatchy as a Director of Kingfish Limited

Resolution 3
Auditor Remuneration
That the Board of Directors be authorised to
fix the remuneration of the auditor for the
ensuing year

Retirement –Carmel Fisher

Conclusion
•Complete and sign voting paper
•Voting papers in the voting boxes
•If you need a voting paper please see Computershare
•Results to NZX

Thank you

---

Kingfish Limited
Phone +64 9 489 7094
Fax +64 9 489 7139
Private Bag 93502
Takapuna, Auckland

6 August 2021
Kingfish Limited Annual Meeting
Chair’s Address from Alistair Ryan
[Slide: Kingfish Limited Annual Meeting of Shareholders]
Welcome to the 17th Kingfish annual meeting of shareholders, I’m Alistair Ryan, Chair of Kingfish.
Its pleasing to be able to hold this annual meeting in-person, after being forced last year into holding
only a virtual meeting. However we have put in place the virtual meeting option for those who are
unable to attend in-person, and we welcome those who have joined the meeting via the LUMI
virtual meeting platform.
We are duly convened as a Notice of Meeting has been circulated to shareholders and I can confirm
that a quorum is present so I declare the meeting open.
Please note that the exits are at the back and front of the room. Please ensure you turn off your cell
phones.
For those here in-person there will be a light lunch at the conclusion of the meeting. We look
forward to meeting many of you after the meeting.

[Slide: Introductions]
Let me introduce the front table.
Firstly the directors. To my right is Carmel Fisher (who official retires from the board today, and who
I will call upon later today to address the meeting). Next is Andy Coupe, then Carol Campbell and
David McClatchy.
Next to David is Sam Dickie the Kingfish Portfolio Manager, and next to Sam is Wayne Burns the
Corporate Manager.
Also here today, in the audience, are Senior Investment Analysts Matt Peek and Michael Bacon. Can
you please stand up Matt and Michael.
We are also pleased to have representatives from our share registrar, Computershare, auditor,
PricewaterhouseCoopers, our tax agent, Deloitte and our legal advisors, Bell Gully in the audience
today.

[Slide: Agenda]
The agenda for today.
Firstly preliminary matters
The minutes of the 2020 annual shareholders’ meeting held on 20 August 2020 are available at the
registration desk and are also on the Kingfish website.
The 2021 annual report has been circulated to shareholders – additional copies are available at the
registration desk and can also be found on the Kingfish website.

Today I’ll give a brief update on the Kingfish 2021 financial year, and then Kingfish’s Senior Portfolio
Manager, Sam Dickie will review the Kingfish portfolio.
After the Manager’s Review, we will have a Q&A session, and we’ll then move to the formal business
of the meeting.
There are three resolutions for you to consider and vote on today, which are as set out in the Notice
of Meeting.

[Slide: Online Attendees – Question Process]
If you’re attending the meeting online there’s a Q&A icon at the top centre of your screen.
To send in a question, simply click in the “Ask a Question” box, type your question and press the
send arrow.
We’ve set aside a time at the end of the two presentations for general questions relating to the
operations and management of the business.
Questions relating to the three resolutions will be dealt with in conjunction with each of the
resolutions.

[Slide: Chair’s Overview]
It is my pleasure to present the Chair’s Overview at this meeting.

[Slide: Kingfish’s Investment Objective]
As directors, and managers, we typically start our annual meetings with a quick reminder of what we
are here to achieve, being :
- to achieve a high real rate of return, comprising both income and capital growth, within risk
parameters acceptable to the directors; and
- to provide access to a diversified portfolio of New Zealand quality, growth stocks through a
single tax-efficient investment vehicle.
The two objectives have been met for 2021 and have been consistently met, year on year.

[Slide: Kingfish’s Corporate Governance]
Turning now to corporate governance.
The board is committed to strong governance principles and to overseeing the Manager’s portfolio
performance on behalf of shareholders.
In a normal year the board generally meets formally six times per annum, plus other meetings as
required. As the Covid uncertainly developed the board scheduled a number of additional meetings
with the Manager to check that appropriate risk management processes and procedures, including
rigorous application of the STEEPP process, were being adhered to.
These additional meetings enabled the board to monitor and closely oversee the portfolio
management process undertaken by the Manager as part of its mandated approach.
In addition to the special meetings referred to above, the Investment Committee meets twice a year,
on a six monthly basis, to hear from the Manager about what has gone well and what has
disappointed, and to engage in a comprehensive review session covering key performance metrics,
some of which we will go through on the following slides.

The Kingfish Audit and Risk Committee generally meets twice a year, on a six monthly basis, to
review the company’s financial reporting, internal controls and risk management systems, and to
meet with the external auditor and receive their report on both the interim and year end accounts.
The Kingfish 2021 result was announced in May, but I’ll highlight some of the key performance
measurements on the next slide, and Sam will discuss the underlying performance in his
presentation.

[Slide: 2019 Overview]
So how has 2021 treated shareholders?
Kingfish has certainly delivered, with a very strong net profit of $142.7m. However, given that
Kingfish’s FY20 result (for the year end 31 March 2020) was effectively wiped out by the
sharemarket’s reaction to the Covid pandemic, we should think of the FY21 result as being for two
years. Even apply that logic, the result represents Kingfish’s best ever net profit.
Total shareholder return was 65.1% for the period, helped by the significant increase in the share
price, which I’ll talk about later.
Kingfish’s regular dividends continued to contribute to the total shareholder return with 13.48 cents
per share paid in dividends during the 2021 financial year, which is equivalent to a dividend return
(based on the average share price for the year) of +7.7% (2020: +8.5%).
Due to the strong portfolio performance in 2021, the overall net asset value (NAV) per share grew
from $1.39 (as at 31 March 2020) to $1.77 (as at 31 March 2021) – even after dividends were paid
out and warrants exercised during March this year.
The adjusted NAV return was +41.1% for the period which represents the net return to an investor
after expenses, fees and tax.
The share price to NAV difference changed from a discount of 6.7% (31 March 2020) to a premium
of 7.3% as at 31 March 2021. This change helps explain why the total shareholder return is 24%
ahead of the adjusted NAV return.

[Slide: 2019 Overview - Continued]
This chart compares the Adjusted NAV return, (the net return to an investor after expenses, fees and
tax), and the gross performance return (the return before expenses, fees and tax), to the benchmark
index return over the periods of 1, 3 and 5 years.
The Kingfish portfolio has consistently out-performed the consistently strong benchmark index.
Sam will discuss the New Zealand sharemarket dynamics and how the portfolio performed shortly in
the Manager’s Review.

[Slide: Basic and Diluted Earnings per Share]
Given the increase in the number of shares through the warrants and dividend reinvestment
programmes, it is pleasing to note the growth in Earnings per Share over the five years.
The sharemarket downturn at the end of the 2020 financial year inevitably had a dramatic impact on
the FY20 earnings per share, reporting at only 0.75 cps – but as mentioned earlier, the 2021 result
effectively makes up for the previous financial year.
Its a potent reminder of how variable sharemarket returns can potentially be and the degrees of
volatility that equity markets can experience from time to time

[Slide: Kingfish Share Performance]
The ratios and percentages on the previous slides can be a bit confusing to shareholders who simply
want to know, how did we do ?
So, to keep things simple, let me work you through the basics of the share and warrant performance
for Kingfish shareholders over the last 12 to 15 months.
Share price in the first month of the financial year (April, 2020) was distorted by the recovery from
the depths of the Covid date of March 23, 2020 when the share price got as low as $1.05, having
been $1.70 at the end of January (2020).
By the end of April (2020), the share price had recovered to $1.50 and then to $1.61 by 1 July (2020).
Which equated to almost $1.63 with the then warrant price of 7 cents, divided by four, added.
(I.E. The share price of $1.61 plus $0.02 for the warrants equals $1.63).
So, it seems sensible when taking a 12 month perspective, away from the distortions of the
March/April 2020 period, to look at share and warrant performance from say 1 July 2020 through to
1 July 2021.
When we do that, we see that the share price has moved up from $1.61 to $2.03.
The net benefit of the warrants equates to 12 cps.
And the quarterly dividend distributions during this period have totalled a further 14 cps.
All in all, a net gain of 68 cps. An excellent return on a starting share and warrant value of $1.63.
Shareholders can be pleased with their Kingfish result.

[Slide: Use of Shareholder Funds]
Turning now to Shareholders’ Funds
This chart shows the Kingfish NAV of $345m (as at 31 March 2020) increased by a net $206m to
$551m (as at 31 March 2021).
The movements during the year as represented by the blue and yellow columns were:
plus $143m net profit,
And movements due to capital management initiatives:
- Warrant funds invested of $85m
- Less $34m dividends paid, but adding back $12m for dividends reinvested by shareholders.
There were no buybacks during the year, as the share price discount to the NAV never triggered
buybacks. For the second half of the year (from October 2020) the discount moved to a premium
position, which has been sustained.

[Slide: First four months, FY 2021]
The first four months of the new financial year show a more subdued level of growth, with the NZ
sharemarket under-performing, when compared to global markets.
This slide provides a snapshot of the first four months of the current financial year to 31 July 2021:
Total shareholder return for the four months was +7.7% - driven by the share price increasing from
$1.90 (31 March) to $2.01 (31 July).
As at 31 July, the NAV per share was $1.76 ($1.77 as at 31 March) – a decrease of 1 cent in four
months and after a dividend of 3.60 cents per share paid on 26 June.
The adjusted NAV return for the first four months of the 2021 financial year was +1.5% (which
represents the net return to an investor after expenses, fees and tax).

This performance to date, translates to a net profit of $8.1m for the four months to 31 July.


[Slide: Warrants]
Kingfish has an ongoing warrant programme as part of its overall capital management programme.
The last warrants (KFLWF) were exercised 12 March 2021.
56.3m out of a possible 61.5m warrants were exercised (91.4% exercised), at a final exercise price of
$1.51. On the same day Kingfish shares were trading on-market at $1.90 (a 25.8% premium to the
exercise price). $84.8m of new funds were invested into the Kingfish portfolio.

Closing remarks
In closing, on behalf of the Board, thank you shareholders for your continued support of Kingfish. I
will now hand over to Sam Dickie, Senior Portfolio Manager of Kingfish.
ENDS